The most vibrant, audacious markets in the world are in East Asia; Eastern Exposure takes a new look at what they’re doing and why it makes a difference for the global economy. I’ve been doing this the last few years for Forbes, Forbes Asia and other publications, and as a consultant. Much of my career has been in the corporate world as a marketer for global telecom and media giants, but I’ve also started two companies, and ran an ad agency back when you could shoot dice at the Treasure Island with Bill Gates at 3 a.m.

Selling A Better Life

In the Rough-and-Tumble Business of Direct Sales, Malaysia’s Vijay Eswaran Learns from Mistakes and Builds a Movement

Thousands have come to Jakarta from all over Asia, waiting with patience and anxiety for this moment. At last the music swells. An excited murmur arises; he enters behind a phalanx of bodyguards, and the crowd parts. People strain to touch him or at least his high-collared tunic. Spotlights cast him in a golden glow. He raises a hand in benediction, utters a few unheard words and lets the rush carry him on. Vijay Eswaran has arrived.

It’s a triumphant return to Indonesia for the Malaysian founder and chairman of the Qi Group, a young giant of multilevel marketing with sales that could approach $1 billion in the next couple of years. His annual three-day convention, training session, pep rally and lovefest, the VCon, has attracted more than 8,000 of his company’s so-called IRs. These are some of the 4.5 million independent representatives who buy and sell his products, creating networks that they call a chain of prosperity, giving them a business of their own and a vision of a better life.

Wrapped up in the adulation, it’s tempting for Eswaran to forget the last time his event was held here, in 2007. An obscure lawsuit in the Philippines had mutated into an Interpol arrest warrant, clapping him and three senior executives in jail for three weeks. Indonesian courts scoffed and set him free; a Manila court dismissed the charge soon afterward. But Eswaran remembers it as one of the consequences of building a business in which some people expect a get-rich-quick scheme and feel cheated when they don’t get one.

Or as one reveler put it, “Just because there’s no limit on what you can make doesn’t mean you don’t have to work. Some people don’t, some do.” A young man from Malaysia, Omar, was without prospects in 2009 when he joined Qnet, the company’s keystone division, to sell personal-care products to a few friends, who told other friends. It was tough going at first, but now he can afford to move out on his own and wants to get married next year. “It has changed my life, and it has changed me,” he says. “For all of this I thank Vijay Eswaran.”

People such as Omar have helped Eswaran emerge as one of the most charismatic of Asia’s self-made businesspeople over the past 20 years. Selling the simple things of day-to-day life such as cosmetics and discount phone cards, while also building a thriving gold coin business, has made the 52-year-old one of the richest people in Malaysia. Forbes Asia estimates his net worth at $500 million, based on his stake in the unlisted company as well as holdings in real estate and fine art on display in his lavish homes in Kuala Lumpur, Bangkok, Sydney, Hong Kong–where the Qi Group has been headquartered since 1998–and London. (The company won’t divulge his stake, saying only that it’s a majority share, but insiders there indicate that it’s between 70% and 90%. Qi also won’t disclose its annual profits.)

At the same time he has been the target of dozens of accusations of everything from sketchy dealings to outright fraud. There have been outraged postings on the Internet and short-lived government crackdowns. Rumors of shoddy dealings can be the kiss of death in a business where word of mouth is all-important. So Eswaran decided to defeat them openly, with an aggressive campaign of newspaper ads, a website devoted to debunking the claims, and lawsuits. Now many of the claims have been retracted, and the online slurs have faded.

Feeling vindicated, Eswaran is remaking the much maligned multilevel marketing industry, bringing in corporate-style management, information technology and new product development. He’s diversified into areas such as telecoms, travel and meeting management. He’s brought business skills, energy and jobs to developing parts of Asia where they can be scarce. And he’s done this with a company culture that stresses spiritual growth, positive intentions and service to others (see sidebar) . “This is a very difficult part of the world to operate in,” says Charles King, an academic at the University of Illinois who has studied direct sales for 25 years. “I don’t know of any other company in Asia that has been able to master the subtleties of the multilevel marketing structure so well, continually adapting it to produce sustained growth.”

He’s talking about the biggest challenge that bedevils this industry: how to make sure people are paid fairly while sales still grow. That’s often a conflict in the world of multilevel marketing: An IR is not an employee but his own business, and he buys products to sell from the person who recruited him into the company. He can recruit others to work under him, and so it goes until there’s an entire sales network, cascading downward from a few people into tens of thousands. If not managed right, this can give IRs a perverse incentive to simply sign up new people. The result: flash-in-the-pan outfits with annual attrition rates that can run more than 100% as they quickly max out their markets, cash in and leave.

Qnet is different. Its sales (plus other Qi Group direct sales) have jumped 70% in the last five years. And in a business that’s famous for making decent money for only a few well-placed people at the top, Qnet’s top IRs can make thousands of dollars a month. That’s a lot of money in developing areas such as North and West Africa and Central Asia, where its numbers are growing. And unlike other direct sales operations, it doesn’t require minimum orders or massive fees to join.

Eswaran believes that all of this carries a lesson for a fast-changing global economy. “We’re in the middle of a massive consolidation of the workforce that cannot possibly provide enough jobs. What are people going to do?” he asks, reflecting in his two-story Bangkok penthouse studded with collections of everything from modern Asian art and statuary to fine cigars and the framed autographs of rock stars. “This model shows how normal people without a business background can learn the skills and the attitudes to keep themselves employed.”

The senior staff of Qnet provide enough examples. Donna Imson was a jobless single mother of three with little education in a Manila suburb when she signed on, in fits and starts, to a then new network for selling collectible gold coins, Goldquest. Gathering customers in home meetings, she went unnoticed for months. Now she’s the number two person in the company, a celebrity in direct sales and a motivational speaker beyond it. One Qnet executive, Arun George, describes himself as at loose ends in his 20s after an unhappy job at Unilever. A few years after he joined Qnet he’s now running his own sales training company on the side and has just started an investment partnership.

All of this was far from Eswaran’s thoughts when he started Goldquest, the original name for Qnet, in 1998. The eldest son of a senior civil servant, he moved often around Malaysia until going abroad for university. Armed with a degree from the London School of Economics, an M.B.A. from the University of Southern Illinois and a few years in jobs as varied as technical program manager, cab driver and grape picker, he returned to Asia to work for a network marketing company owned by Malaysian magnate Vincent Tan.

But he soon struck out on his own. “Gold coins had a good deal of residual value [beyond the value of the gold itself] that had never been realized, and the instability of the region’s governments made them an attractive investment,” Eswaran recalls of the GoldQuest business model. Drawing on his still-unusual background in information systems, he devised an online secondary market for custom-commissioned commemorative coins, allowing people to make bets on their increase in value and track it daily. Business was good until his U.S. partners disappeared without a trace–the first of a number of setbacks that, at the time, seemed like disasters.

But it was not nearly as bad as the one in Chennai in 2008. India had beckoned–Eswaran’s family had left there for Malaysia seven generations earlier, and it has always exerted a powerful emotional pull on him–but it was a problematic place to do business. For example, one unscrupulous operator in Chennai set up a scam gold coin operation claiming he was with Goldquest, bilking a large number of would-be IRs before he fled, according to Raj Natarajan, then a graduate student who attended a presentation and is now an entrepreneur in the U.S.

Corruption in Chennai had long been a sore spot for businesses there, and Qnet says it had always complied with the regular shakedowns. But one day in mid-2008 there was a mix-up and the office manager refused to pay. Before long local police had jailed seven workers and impounded all of the customer goods in its warehouse. Massive, ugly demonstrations ensued as angry IRs demanded their merchandise and officials condemned the company as a pyramid scheme.

Similar phony charges in a number of countries over the past ten years have also been made. According to press accounts, governments in Sri Lanka, Rwanda, Sudan, Iran, Turkey and Nepal have either banned or formally investigated Qnet or its affiliates, QuestNet and the former Goldquest. But in these cases, the company says, terminated IRs or even impostors used the company’s name as cover for unsavory dealings. Benjamin Tan, one of the founders of the Direct Sales Association of Singapore and author of its Code of Ethics barring abusive practices, says they are common in places with slack regulation. “Qnet or any legitimate company would simply have too much to lose [if it engaged in such practices],” he says.

In the end everybody in Chennai got their goods, and nobody was convicted of any crimes. But the damage had been done. Negative press coverage spread all over India; sales suffered.

Shaken by these incidents, Eswaran set out to remake the company so it would not be hurt in this way. He beefed up the compliance office so it could investigate and expose abusive IRs and impostors, and set up a website to openly rebut allegations and rumors. He cut off malefactors. He sped up plans to convert IR operations to an all-digital platform, so that every IR does business through a virtual office and the inventory he’s reserved for customers is not at risk. One consultant says Qnet’s use of information systems is “far in advance” of any direct sales company in Asia. “No such company has gone as far in using e-commerce as a way to implement trust-based business relationships that are as old as business itself.”

His most profound decision would transform the Qnet product line. Luxury goods such as jewelry and watches can be sold only once, and customers can compare prices between his line and competitors. But Eswaran knows his strongest asset is the personal bond between his IRs and the people they sell to. The best products for Qnet, he decided, promise a personal transformation–better health, more youthful appearance, even physical and spiritual vitality, the kind of thing that’s best explained and sold person to person. Better yet, often these products can be sold in a steady stream, such as a new line of nutritional supplements.

So-called “energy products” are some of the hottest new entries. The glass and steel Chi Pendant 2 amulet, the catalog says, leaves you feeling “refreshed and rejuvenated,” thanks to circles etched into the glass that neutralize the “hidden pollution” emitted by the technologies of the modern world such as cellphones and cars.

A claim like that would not pass official muster in much of the world. But there’s plenty of research suggesting that someone who believes a product can do this will, in fact, feel stronger and more confident. “Aspirational products are some of the biggest sellers in the world of multilevel marketing,” says one scholar who has studied the industry. Ronald Kuntze, professor of marketing at the University of Tampa in Florida, explains that products such as this can be highly profitable and are almost never returned. Eswaran says Qnet’s energy products now make up 30% of its sales, and he’s finding more scientific evidence that they can work.

Is Eswaran selling what Kuntze calls “magical thinking?” He sees no difference between his products and the perfumes, luxury watches and blue jeans with logos sold in brand name shops all over the world. “Is there any retail business that is not selling gratification, hope?” he asks. Rebuilding his business in India, in fact, required him to underplay the gold and luxury products in favor of vacation time-shares and “wellness” treatments. Now the Indian operation is four times the size it was before the Chennai debacle, according to Kuna Senathirajah, Qi’s regional director for India.

One piece of the strategy, diversification, has given the Qi Group a piece of the British telecommunications business. Qi Comm, a telecom services provider acquired in 2005, was intended to serve Qnet’s internal networks and the virtual-office concept for IRs. Over the last few years it has become a player on its own, taking on outside customers to boost its 2011 revenue to $96 million and spinning off its data center as another freestanding company. Qi’s meetings and events organization, a key element of a company that relies so heavily on training, has done the same thing by spinning off into a business with outside customers. Qi also owns a chain of vegetarian grocery stores in Hawaii.

Backstage at the arena south of Jakarta, Eswaran hosts a procession of well-wishers, business partners and senior IRs from a dozen countries. Before parting, his fellow Indians may touch their fingers to their lips and then to his shoe, a traditional gesture of respect for a teacher. Much about the Qi Group is imbued with such values, from the expectation that IRs serve the less fortunate to the meditation and mindfulness that they should master as skills. Eswaran has given out or sold 500,000 copies of his five books on these qualities, including his bestseller of aphorisms, The Sphere of Silence . He named his charitable RYTHM Foundation after a quotation from Gandhi and positions it as a central part of the company’s culture.

Standing before a crowd of charged-up IRs that has just seen a stage show with lasers, dry ice, pyrotechnics and Indonesia’s answer to Beyoncé, he is a calming presence for an inspirational speaker. He tells them they must show the confidence and initiative that come from an inner peace. He often asks, “Do you follow me?” like a mantra that picks up momentum and becomes a chant, simultaneously translated into languages from Arabic to Russian. They say they do.

Now that they are subsiding, Eswaran has an explanation for the wave of derogatory official announcements, bans on his company that were soon lifted and investigations that came to nothing. “Governments in this part of the world will let you get away with all kinds of things,” he says back in Bangkok, referring to misdeeds from environmental devastation to human trafficking. “But the one thing they don’t want you to do is engage the human mind and spirit.”

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I have a suggestion for you, before making any comment on a public platform you should go back and put some research on what you are saying, get your facts right on ponzi schemes and network marketing.

and Forbes is putting a piece on QNET, may be in your opinion Forbes is also rigged and running a scam here :D :D

Responses again to a phd:……… By Mark Ferreira.. A Man who helped Change the Economic Scenario in EGYPT with his Father who is a “Padma Shri” “Padma bushan” “Dronacharya” and “Arjuna Awardee” Mr. Michael Ferreira”.. who by building a Team of more than 30000 Entrepeuner s called FAITH

His address to John MBA PhD:-

My Name is Mark Ferreira, apart from being an former Number 1 tennis player from India, I am also the founder of an organization that has business on several continents in QNet. Furthermore, I am also the author of an article “The world has no choice but to choose Network Marketing, featured in the Networking Times of the USA. To refute these few line below in inverted commas.

“MLM as a business model is dependent upon a whole network of endless chains of participants – or recruiters recruiting recruiters, ad infinitum. The sellers are the buyers, and the buyers are the sellers – to themselves and their families. The compensation plans of all of the 500 MLMs I have analyzed assume infinite markets – which do not exist in the real world. They also assume virgin markets, which don’t exist for long – which explains why they are continually entering (“re-pyramiding” into) new markets, since none of the markets can sustain themselves indefinitely without a solid base of non-participating customers. They are therefore inherently flawed, deceptive, and profitable primarily for the first ones into a given market. Later entrants are being sold a ticket on a flight that has already left the ground.”

My comments: Please go through this, I will say, any Company’s distribution systems require customers who purchase and use products. “chains of participants” and “recruiting” have the insinuation of pyramiding Ponzi schemes and should be deemed illegal in any jurisdiction. I agree with this. The number of countries in the world are what we term as “markets” There are NO infinite markets. In that statement you are correct.

“Virgin markets” Please address these terms to Templeton or HSBC or any large financial institution who have made plays into “emerging” in your terminology “Virgin” markets. Re:”Don’t last too long?” based on what do you say this? All the BRIC nations are virgin markets in terms of growth. Are not Virgin markets are where most companies in any industry can earn a lot of money if the matrix is done correctly with ethics and best practices applied?

Re: “since none of the markets can sustain themselves indefinitely without a solid base of non-participating customers” No Company can sustain if sales do not happen without participating customers, be it Coca cola or Nokia. Are you suggesting the world is static in nature?, because informed people certainly believe it is dynamic.

Re: “therefore inherently flawed, deceptive, and profitable primarily for the first ones into a given market. Later entrants are being sold a ticket on a flight that has already left the ground.” My answer: Please take a look at how Mutual Funds are sold. Do they not sell to customers on the past NAV which is something that “accredited investors” i.e. “financial illiterate” people buy into which is not in their interest to buy when the NAV is high? or any financial product has been sold in the USA, the land of the free and the home of the brave? Perhaps that would enlighten you on the norms of practice there, or focus on KPMG who should be outlawed given the fact they have been charged with and proven guilty of messing around with records and is still in operation. Forget the big giants of Insurance names that every household name knows paying a billion USD in fines. Point here is one size does not fit all John, with respect.

“On average, 99.7% of participants in MLMs like QNET lose money (after subtracting all expenses), and the dropout rate is also very high.” My Answer: Anyone knows, if you did your research, you will find that 80 percent of all business in ANY industry fail in the first year. Then 80% of the remaining fail in the next 5 years. The ratio in the real world in 96% FAIL and 4% succeed. IN ANY BUSINESS, not only Network Marketing QNet is in its 14th year and you can check how well it is doing through your own research.

“The odds of profiting are far greater at many of the gambling tables in casinos – without risking one’s social capital.” My Answer: By this remark, lets look at all the people spending on tennis, golfing acting or college. How many of them actually reach the top? Have they not risked capital as well? Are they not gambling as well to be on top?

“It is not the people or the products that are the villain, but the underlying system, which is a flawed endless chain business plan, or product-based pyramid scheme. I could go on with this comment, but would instead challenge the reader to do his or her own investigation” My Answer: .If your assumptions are incorrect how can your results be correct John?

My research is posted on my web site at – mlm-thetruth.com, where my book and dozens of reports can be downloaded free of charge. My Answer: Lastly, There are three places a smart person can get his information. 1. from a person who has read researched the industry but never done it. 2. From a person who has done and failed miserably, in which case he has nothing good to say or write and 3. from a person who has done and is doing well and extremely successful in this industry. Members of the jury, if you are smart and have a dose of grey matter in the cranium, you will know where to get your information from

Rajiv, Your claim may be because of these reasons - 1. You have absolutely mastered this business and later surprizingly came to know this is scam. 2. You tried this business and you failed. 3. You never tried to do any business. Whats yours friend?

Yes Rajiv, I am surprised that QNet in 14 years of existence has over 4.5 million customers and touching US $ 1 billion ( 1000 crores) turn over..The company has over 20 fully owned subsidiaries over the globe in UK, Germany, Switzerland, Singapore etc and is a global conglomerate..

But not to worry.. now that you have warned the buyers and enlightened that this is a ponzi and big fraud and useless products sold, we will all be extremely careful and take due caution. afterall how can we ignore an advice from such a highly placed, respected and knowledgeable person like you… surely we all will blindly do as you guide us. ….. and I am also surprised that Forbes is promoting this… How come Forbes be doing such a big mistake… oh My oh My..

As a backgrounder I was the Chief Consulting Editor of Bloomberg TV and ET Now, Editor and Senior Achor at CNBC-TV18 and Senior Anchor at NDTV/Star News. I am also a best selling author of over a dozen books on Investing, Trading, Commodities etc. So I hope, this provides you with credibility in terms of a “detractor”

QI/QNet/QuestNet/GoldQuest/Faith Network is not just a fraud but they lure women to break away from their families and then go after the family money. My own wife fell into this trap. I have 3 little children and she has put their future in jeopardy. They first lured her into their web using hypnotists (their Mumbai kingpin, Manjunath Hegde is a hypnotist and they proudly declare his as “master of the mind”). The network in Mumbai is run through another cult like organization called “Faith Network”.

Once this was done, they got her to put money from our house and relatives. Then they told her to kidnap our children and run away to Thailand (my kids are US and Thai citizens). Fortunately, Indian Immigration stopped her from going to Thailand.

This is my story. I can tell you there are hundreds of Indian families that have been ruined my these people. In Mumbai, they use hypnotism and cult like practices (wearing white clothes with blue pendants). Once they get the women trapped, they go after their wealth. My wife has now gone on to take over our assets by changing directors and doing all kinds of illegal corporate stuff guided by QI kingpins

This is a personal experience and I come from your fraternity. I must say I was very dismayed to see a magazine of your standing put out an article about people who use cult like behaviour/hypnosis and destroy families

QNet openly uses your article to mislead people on their credibilty. While it may just be an article for you, hundreds of homes have been destroyed, people are being sold Ponzi schemes in a country where the level of financial literacy and understanding of legal rights is very poor

I have gone through this experience. If you have lost any money with QI/Qnet or have been scammed (or know someone who has), try the Economic Offences Wing of the Mumbai Police. They may get your money back or atleast save others from getting trapped in this scam. Their address is:

A police officer said that the company, which had been selling its product through qnetindia.in has its head quarters in Hong Kong. The company lured investors with various schemes with an investment between Rs 30,000 and Rs seven lakh. “The firm posed as a marketing firm which would sell bio-disc, watches, chiPendants, gold coins, herbal products, E-education packages, holiday packages etc. They even claimed that by using the bio disc one can cure cancer and barain related diseases,” said a police officer. “We are probing the case and will soon make arrests,” said Rajvardhan Sinha, additional commissioner of police.

A police team visited Bangalore on Friday to trace the culprits. It has named five accused in the FIR. The complainant, Gurupreetsing Anand, 40, a computer consulatant from Lokhandawala, stated that his wife was duped of Rs 30,000 by some people who had introduced themselves as the independent representatives of QNe. “They had said that one of the bio-products my wife bought could be used to treat my 12-year-old son’s brain related diseases,” Anand told police. The police suspect that at least one thousand people have been duped in Mumbai alone. The accused had even organized a two-day seminar in a Bandra college on April 14 this year. The investors were promised Rs 35,000 commission/profit for bringing three new members.

The firm claimed that bio disc had magical powers and can change the molecular structure of water. “One of the wanted accused Vinay Esvaran, had earlier floated two firms; Gold Quest and Quest Net Enterprisses, in India and duped thousands of people. These two firms were also popular in Egypt, Afghanistan and Malayasia. We are trying to zero in on Esvaran and will soon arrest him,” the officer

If you have lost any money with QI/Qnet or have been scammed (or know someone who has), try the Economic Offences Wing of the Mumbai Police. They have filed FIRs and taken action against MLM like QNet, SpeakAsia and MMM etc on complaints from ordinary people They may get your money back or atleast save others from getting trapped in this scam. Their address is:

http://www.business-standard.com/article/markets/two-shareholders-control-100-per-cent-stake-qnet-s-india-franchisee-113091800675_1.html Two shareholders control 100 per cent stake QNET’s India franchiseeFY12 Balance Sheet shows networth of Rs.6.53 lakhs The relatives of two directors in QNET’s franchisee company, Vihaan Direct Selling (India) Private Limited, hold all of its equity capital-consisting of 100,000 shares. Vihaan is the franchisee handling the India operations of QNET, the controversial marketing scheme which allegedly offers individuals the opportunity to make Rs4-5 crore through direct selling with an investment of less than Rs2 lakhs.It is estimated to have collected in excess of Rs400 crore. Vihaan’s shareholders fall under the category of directors or relatives of directors, according to a Business Standard analysis of filings that companies have to maintain with the Ministry of Corporate AffaiRs Guhan Ramachandran and Vanka Srinivas Rao are listed as directors of Vihaan, as per documents filed after the annual general meeting held on 29th September 2012. However, the documents also show that they do not hold any shares in the company suggesting that their relatives are the stakeholdeRs QNET earlier operated in India through Questnet Enterprise India Pvt. Ltd “For various business reasons QNET, however, decided to award the franchisee to Vihaan,” said Ajay Chanam, Official Spokesperson, QNET in India. The spokesperson maintained that there was no relation between the old franchisee Questnet Enterprise India and Vihaan. QNET declined to comment on the identity of Vihaan’s shareholdeRs Vihaan was incorporated on 10th October 2011 and the last balance sheet it has filed pertains to the financial year ending in March 2012(FY12). Updated documents will only be filed by the end of September, said the spokesperson. Vihaan has a share capital of Rs10 lakh rupees, according to the last available balance sheet. It had current liabilities of Rs10.45 lakh and total liabilities of Rs16.98 lakh. Meanwhile, it had current assets in the form of cash and cash equivalents of Rs16.71 lakhs.

The company, which is said to have done business worth hundreds of crores, had a networth of Rs6.53 lakhs as per its last balance sheet. Estimates based on Business Standard’s direct interaction with company distributors and source-based information suggests that the company has collected at least Rs400 crore so far. The amount was based on information which suggested that they had enrolled around 30,000 investors, most of whom had paid at least Rs1.5 lakhs upfront towards becoming a part of the company. The company said that it had 68,000 representatives but disputed the figures for the amount of money it had collected, suggesting at first that it hasn’t done as much business yet. It then said that it had been on course to do business which was higher than the said amount for the current financial year. It later suggested that this is a rough estimate and could be affected by recent issues. The company is being probed by the Economic Offences Wing following a complaint about the sale of ‘miraculous products’ with the power to cure cancer and other diseases, according to reports. The police has arrested a person in connection with the same and frozen multiple bank accounts, they said. QNET maintained that the company was not involved in illegal activities. It declined to comment on Vihaan’s financial details.

According to EOW of Mumbai police, these team leaders of QNet received commission ranging from Rs40 lakh to Rs2.5 crore in the binary pyramid scheme which is banned in India

QNet, the Hong Kong-based controversial multi-level marketing (MLM) operator that is accused of collecting money under the garb of selling products suffered another jolt. The Economic offences wing (EOW) of Mumbai police, which is probing a case against the MLM company, arrested eight of its agents or independent representatives (IRs) as QNet refers them. The EOW also froze bank accounts of these people.

According to Times of India, the eight arrested are, Vivekkumar Singh, Shashibhushan Rameshwar Pandey, his wife Namrata Pandey, Sabeena Vijay Mathew, Vijay Mathew, Jagdevsingh Parmar, Rohit Chandra and Mahesh Baharwali, all of whom are team leaders of QNet.

Rajvardhan Sinha, additional commissioner of police (EOW) told the newspaper that “These accused have got commission ranging from Rs40 lakh to Rs2.5 crore in the binary pyramid scheme which is banned in India”.

Earlier, in August, the EOW froze six bank accounts of QNet and its associates with a balance of Rs46 crore in all these accounts. EOW had registered a case against QNet, for allegedly duping thousands of investors by selling them plastic and glass products terming them miraculous objects for treating severe diseases like Cancer. ()

The complainant, Gurupreet Singh Anand, a computer consultant from Lokhandawala, Andheri in his first information report (FIR) stated that his wife was duped for Rs30,000 by some people who had introduced themselves as the independent representatives (IRs) of QNet. Anand told the police, “They (IRs) had said that one of the bio-products my wife bought could be used to treat my 12-year-old son’s brain-related diseases.”

The FIR names five accused, including QNet’s Hong Kong-based founder Dato Vijay Eswaran, a Malaysian by birth and an Indian by ethnicity, who is photographed hobnobbing with the Prince of Saudi Arabia, in order to enhance his credibility in the Gulf.

As reported by Moneylife, QuestNet and GoldQuest, the MLM companies that had shut shop in 2009 following police action are back with a bigger bang. They now call themselves as QNet and are thriving in an environment where tens of thousands of Ponzis and MLM companies are able to lure people into believing that they have the formula to instant riches and a high growth career.

QNet operates in India through its official franchisee Vihaan Direct Selling Pvt Ltd, which carries the company’s brand name in the country. However, Suresh Thimiri, who is often touted as QNet India’s chief executive and had denied any relationship with QNet or any of its representatives, owns the ‘QNet’ trademark in India through his company Transview Enterprises Pvt Ltd!

Another interesting aspect in the whole episode is all top officials (?) of QNet India do not want to reveal their identity and remain hidden. Moneylife repeatedly sent emails to the company’s official PR agency and also some officials from its parent QI group but there is no information forthcoming.

Rajiv, please get to know the meaning and definition of Ponzi. Before posting something please verify and check yourselves about the products and services that the company is providing. Without any investigating or enough knowledge/Proof Frobes won’t post on Dato Sri Vijaya Eshwaran. So, please get to know the facts behind it and correct youselves. God bless you Rajiv.

Wow!!! Forbes promoting a fraud, I guess true journalism is indeed dead. Anyone with half a brain would be able to see that Donald Frazier is on QNet payroll, a company single handedly responsible for cheating millions.

Particularly note this little piece: So-called “energy products” are some of the hottest new entries. The glass and steel Chi Pendant 2 amulet, the catalog says, leaves you feeling “refreshed and rejuvenated,” thanks to circles etched into the glass that neutralize the “hidden pollution” emitted by the technologies of the modern world such as cellphones and cars.

A claim like that would not pass official muster in much of the world. But there’s plenty of research suggesting that someone who believes a product can do this will, in fact, feel stronger and more confident.

This is a claim that was debunked by every single eminent scientist worth their salt, and yet is shamelessly promoted (http://szezeng.blogspot.in/2007/08/amezcua-bio-disc.html). Sure that white collar thief “dato” Eswaran has hired some massive SEO and social media firm to flood the internet with positive reviews to drown out all the negative sentiment, that doesn’t justify criminals like these. I am sure if he was executed in place of Saddam Hussein the world would have been a better place.

Yellow journalism(http://en.wikipedia.org/wiki/Yellow_journalism) at its best.

ha ha ha…your comment is so funny …. the best part is you are listening to a blog written by a stranger who has no proven credibility what so ever…and doubting Forbes…. what happened to common sense… I dont know what colour to give to this common sense ;) ….

Juliet, there is so much of anger and bitterness inside you… You must be a very sad person… Why dont you practice “The Sphere of Silence” written by Dato Seri Vijay Eswaran ? It will definitely help you in evolving as an individual… as a human being… Try it… You anyways have nothing to lose…

Juliet: You spoke about SEO. Did you hire any SEO to bring your comment at the top? ;)

Went through the blog post you quoted. I wouldn’t call myself Einstein just because I wrote an article about a science research. I am sure you will remember the next time you quote an article to look for the right sources (I hope you remember discovery or national geographic) , won’t you? :)

You say, Donald is on QNET payroll. Please post your sources. Maybe you should have taken a little more time to check his profile http://blogs.forbes.com/people/donaldfrazier/ And please do correct me if I am wrong.

I won’t talk about bio disc. Many people have already spoken about it here. Maybe you can post these reviews in the comments section of the blog you posted.. Then, it can genuinely be considered as a review.

You also called Dato Vijay a white collar thief. Maybe you should try applying as the key speaker in the World Economic Forum instead of him. And yes, you should ask someone to recommend you to be awarded as Datin (if you know what it means).

PS: I have partnered with QI Group and I am proud of it. I bought the vacations which the company had to offer (maybe you were oblivious of its existence) and I have recommended the same to a close friend of mine. And guess what!! He is absolutely looking forward to spend his time in an amazing 3-star property at a low price. And I made some money.. Maybe you should try recommending some good things to someone next time. It can help that person as well as you.

There should be enough statements, citations and facts for you in here. Ofcourse considering the mass herd mentality evident here, I am sure you would just ignore it. If only there was a cure for idiocy!!

Hey I don’t think anyone of us should be replying to Rajiv and Juliett’s comments.. pretty sure they will overlook the facts as their sole intention is to bad mouth!! I am sure they have a purpose to do it.. It is absolutely OK for them to do it.. seriously!! People will act and react in a certain way.. we can’t change it!!

Juliet & Rajiv: Please go on saying all the nasty things you can about my QNET.. people have been doing this for last 14 years!! We have only grown and grown and grown despite all this!! No one can stop us!!

Haha Ignorance is bliss. Juliet please take some time off to understand how wikipedia.org works as a concept. Yes you are free to give your opinion but dont be so full of yourself to ignore facts from all over the world and harp your own tune. As rightly suggested by Bimal you need to start with SOS, you need it as an urgent remedy to clear the dark clouds over you. In many ways you will not agree with great leaders like Mahatma Gandhi or Mother Teresa too else you would understand Dato’s vision much better. I do not know you and don’t want to know you, i am sure you are a nice person but character of a person is defined in one’s thoughts, i need not say further. Please start sowing the right seeds take this as a personal advise.

Juliet just for your information, wikipedia can also be edited and most important Internet, google and all technology is human made… so if i want i can write any crap at the end of the day u should comment on what is experienced and not what is just seen/read…

Most of the people who talk ill about Qnet have been a part of it and probably had a bad experience. If you are one of those people you would know that signing up and just sitting on your ass would not give you any returns.

If you haven’t signed up and have not experienced their products, I would suggest you suspend your judgment until a point you have actually experienced working for Qnet and using its products.

I joined Qnet couple of months back. A very close friend of mine who asked me to join Qnet three years back (I said a big NO to him then) quit his existing job a year after getting into this and today takes 4 vacations a year while developing markets in 6 different countries. I wish I had joined him then.

Your thoughts were exactly like mine a few years back but then we need to see something unbelievable for us to be believers. I hope you see this in a friend or a family member and then you will understand what we feel.

If this is idiocy then I don’t mind being the biggest idiot in the world.

You are questioning the Credibility of a Magazine like Forbes..! Wow.. :)

Please do some more research before calling some one a fraud..

Here’s an Amazing article which could help you understand this Amazing Industry better..

Responses again to a phd:……… By Mark Ferreira.. A Man who helped Change the Economic Scenario in EGYPT with his Father who is a “Padma Shri” “Padma bushan” “Dronacharya” and “Arjuna Awardee” Mr. Michael Ferreira”.. by building a Team of more than 30000 Entrepeuner s in a years time called FAITH

His address to John MBA PhD:-

My Name is Mark Ferreira, apart from being an former Number 1 tennis player from India, I am also the founder of an organization that has business on several continents in QNet. Furthermore, I am also the author of an article “The world has no choice but to choose Network Marketing, featured in the Networking Times of the USA. To refute these few line below in inverted commas.

“MLM as a business model is dependent upon a whole network of endless chains of participants – or recruiters recruiting recruiters, ad infinitum. The sellers are the buyers, and the buyers are the sellers – to themselves and their families. The compensation plans of all of the 500 MLMs I have analyzed assume infinite markets – which do not exist in the real world. They also assume virgin markets, which don’t exist for long – which explains why they are continually entering (“re-pyramiding” into) new markets, since none of the markets can sustain themselves indefinitely without a solid base of non-participating customers. They are therefore inherently flawed, deceptive, and profitable primarily for the first ones into a given market. Later entrants are being sold a ticket on a flight that has already left the ground.”

My comments: Please go through this, I will say, any Company’s distribution systems require customers who purchase and use products. “chains of participants” and “recruiting” have the insinuation of pyramiding Ponzi schemes and should be deemed illegal in any jurisdiction. I agree with this. The number of countries in the world are what we term as “markets” There are NO infinite markets. In that statement you are correct.

“Virgin markets” Please address these terms to Templeton or HSBC or any large financial institution who have made plays into “emerging” in your terminology “Virgin” markets. Re:”Don’t last too long?” based on what do you say this? All the BRIC nations are virgin markets in terms of growth. Are not Virgin markets are where most companies in any industry can earn a lot of money if the matrix is done correctly with ethics and best practices applied?

Re: “since none of the markets can sustain themselves indefinitely without a solid base of non-participating customers” No Company can sustain if sales do not happen without participating customers, be it Coca cola or Nokia. Are you suggesting the world is static in nature?, because informed people certainly believe it is dynamic.

Re: “therefore inherently flawed, deceptive, and profitable primarily for the first ones into a given market. Later entrants are being sold a ticket on a flight that has already left the ground.” My answer: Please take a look at how Mutual Funds are sold. Do they not sell to customers on the past NAV which is something that “accredited investors” i.e. “financial illiterate” people buy into which is not in their interest to buy when the NAV is high? or any financial product has been sold in the USA, the land of the free and the home of the brave? Perhaps that would enlighten you on the norms of practice there, or focus on KPMG who should be outlawed given the fact they have been charged with and proven guilty of messing around with records and is still in operation. Forget the big giants of Insurance names that every household name knows paying a billion USD in fines. Point here is one size does not fit all John, with respect.

“On average, 99.7% of participants in MLMs like QNET lose money (after subtracting all expenses), and the dropout rate is also very high.” My Answer: Anyone knows, if you did your research, you will find that 80 percent of all business in ANY industry fail in the first year. Then 80% of the remaining fail in the next 5 years. The ratio in the real world in 96% FAIL and 4% succeed. IN ANY BUSINESS, not only Network Marketing QNet is in its 14th year and you can check how well it is doing through your own research.

“The odds of profiting are far greater at many of the gambling tables in casinos – without risking one’s social capital.” My Answer: By this remark, lets look at all the people spending on tennis, golfing acting or college. How many of them actually reach the top? Have they not risked capital as well? Are they not gambling as well to be on top?

“It is not the people or the products that are the villain, but the underlying system, which is a flawed endless chain business plan, or product-based pyramid scheme. I could go on with this comment, but would instead challenge the reader to do his or her own investigation” My Answer: .If your assumptions are incorrect how can your results be correct John?

My research is posted on my web site at – mlm-thetruth.com, where my book and dozens of reports can be downloaded free of charge. My Answer: Lastly, There are three places a smart person can get his information. 1. from a person who has read researched the industry but never done it. 2. From a person who has done and failed miserably, in which case he has nothing good to say or write and 3. from a person who has done and is doing well and extremely successful in this industry. Members of the jury, if you are smart and have a dose of grey matter in the cranium, you will know where to get your information from

Hey Juliet Are you doing any traditional business? Looks like that and earning lot of money in that. World is looking forward for Direct Selling Business in positive way. Unlike traditional business Eg: cool drinks whose maufacturing cost is less than one rupee sold for above 15 rs and difference cost is shared by company profit, marketing, advertising and distribution agency in direct selling business the difference cost taking the profit margin is shared with network by which the business happens. With traditional business only some earns but big comissions and in network marketing many people earns but little comissions. I don’t understand why people like you only want some people to earn not many :( No direct selling company is forcing any one to be part of it and they clearly says its not get rich quick scheme. If there is any such scheme then everyone would have been part of it and became rich by now. Its individual person’s choice. Then why blaming a company or a industry for same.

Juliet, I personally use three of QNet products and they are amazing. Infact whatever product(not necessarily QNET) I like, I refer to my friends and family. By doing that I think I help them. Now by helping them I earn money too. Wowww, I like this. Simple yet Powerful.

There is an Indian Proverb Dogs always keep on barking but elephant keep on walking……………….. Actually my personal thought is that, in my 40 years of life I have never seen any negative article by a successful person, successful people never blame anybody they learn from their mistakes, I have a question for you, How successful and Happy you are in your Life ?

The Direct Selling Industry is indeed the future of this generation -thanks to Dato Seri Vijay Eswaran for providing this opportunity combined with E-commerce to many qualified professionals like us who have been able to save ourselves from growing recession & sheer Jobism. Though difficult for many to comprehend the potential of this opportunity-the founding father of this company through his powerful & structured trainings empower us with the conviction that this is NOT MAGIC BUT LOGIC coupled with with sheer determination to succeed. Qnet is indeed a revolution in this industry!Once again congratulations Dato Seri Vijay Eswaran!

A Truly Remarkable Human being! I find this article very balanced and perfectly describes how Dato’ Vijay has fought through adversity & braved the odds to make the Qi group along with QNet a force to be reckoned with in the Industry of Network Marketing by sheer Dogged Perseverance. His Vision & Drive has changed Millions of Lives around the World.

At the age of 67, I had achieved all I set out to do and was considered eminently successful by the usual parameters – beautiful home, a wonderful family, the mandatory gold Rolex with diamonds, several cars, a great farm house, no dearth of money et al. Then the opportunity offered by Dato Vijay Easwaran’s remarkable organisation came my way. It was as if I was struck by a thunderbolt. It was, as they say, a game changer for me. I jumped in with all guns blazing and in a relatively short time, thorough hard work, passion and commitment to the cause, I was able not only to enlarge my own options in life, but also to be the instrument of change for literally hundreds of thousands orf ordinary – and not so ordinary – folk. All I can say is thank the Lord that a man of the vision, calibre, character, and compassion of Dato Vijay has walked this earth.

As technology evolves commerce changes, and Dato Vijay Eswaran has done in a relatively short span of time what few would have taken a lifetime to achieve. He has not only revolutionized the way business is conducted but also has made it easier for the common man, with the correct effort, to earn from an additional source of income. Reading the article, I recall that it is not easy to grow without challenges, every great personality sometimes in their lives have faced them and ofcourse ‘when elephants walk, dogs will bark’. Once in while, there comes a person who believes not only in himself but in all, and he changes not only the way we conduct business but makes us better than what we are and challenges us to become our best and beyond with utmost gratitude. He epitomizes goodness and sacrifice and shares that to help ourselves is through helping others. This man is Dato’ Vijay Eswaran.

Big thanks to Dato Vijay. His vision not to make money BUT to change life’s of a billion people is nothing less then the like’s of legends like Mahatma Gandhi, Nelson Mandela, Mother Teresa and a few others. i am proud to be a part of his organisation that believes is the fact every 1 has the right to live their life of choice and not chance. To be a SOMEBODY. I am so greatful to Dato as today i have a chance to be remembered for my generations to come.

WOW!!! Its amazing to see Dato and QNET in Forbes. Dato is a visionary person who has changed lives of thousands of middle class people like me. He has taught the world how to grow as a person and as professional with ethics and morality intact. He has taught us how to fight the challenges without fear without looking at the magnitude of challenge. He deserves the highest honor on this earth for his true service to humanity. Thanks to Forbes for highlighting his contributions to the world.

A very balanced article about qnets journey and the struggles it has faced and how it has overcome. without those struggles qnet would not be where we are today.over the past few years qnet has already emerged as a leader and a trend setter in the direct selling industry and is setting standards for others to follow. The only risk most people taking is not spending enough time to learn how this industry is going to shape the lives of millions of people in the coming few years. Dato Vijay easwaran is a true visionary who can see the invisible. no force in this world can stop an idea whose time has come. what would you do if you knew qnet plan could make millions of people in this planet financially free?

Dato’ Vijay is an amazing person and human being. He has changed millions of people’s lives for the better. Where there is no hope he has given hope and insipired. I’m greatful for his vision and determination to take Qnet to the top!

I am trully blessed to be associated with Dato Vijay and Qi Group. When i joinned 12 years ago there were nothing much to talk about the company except the great oppourtunity towards financial freedom. But i truly felt the heart of the company under the leadership of Dato Vijay. And today Forbes and many reputable organisations are highligthing Dato Vijay and Qi Group. Thank you very much Dato Vijay for making a major difference in my life.

there are only 2 lasting bequests one can offer to the next generation- one is roots & other is wings, dato has given us both..an epitome of intelligence & spirituality- this man has transformed millions of lives across the globe. direct selling is the future & easily available tool for the upcoming generation & dato with his 100% efforts created a platform & drawn focus of direct selling industry to asia , the remarkable growth of ‘QI LTD – GROUP ‘ shows that dato’s desires & commitments are strong enough & can withstand any obtacles,super challenges & rough roads..i congratulate dato once again!!

It is really nice to see Forbes featuring Dato Seri Vijay Easwaran and QI Group. I am glad to be a part of his wonderful vision – of making this world a better place and providing a platform for making people achieve their dreams. It wont take long time for the world to understand the potential of this amazing industry which is producing the biggest number of millionaires in the world

I am really grateful to him and QNET to change my life a 180 degrees and letting me chase my dreams.

In this world where people like to make million dollars, Kudos to his vision of touching one billion hearts!!